Friday, February 6, 2009

How to increase charity ratings

By David Anttony

Charity ratings are highly unpredictable with highly appraised top ranking charities being overtaken by new charities that suddenly make their appearance in the horizon. Charity Water is a rather new but typical example of this. Innovativeness and the all-powerful Internet are causing charity ratings of brand new charities to skyrocket. A charity that could be relatively unknown today might get rated as the best the next day by the New York Times. And then the rating of that charity might shoot up from nowhere to the top of the chart within the matter of a single day.

As the public can be easily influenced by the charity ratings that the agents of mass media give, it is very easy for a completely new charity to grow very fast and be able to attract a wave of charitable donations to their side. For the same reason, when they become less popular with the media, their charity ratings also go down.

Directory lists of charity rating

With cynicism a bit on the higher side and eagle eyed guardians of charity practices ever on the lookout for malpractices, with huge amounts of money spent on managing or misuse of funds, directory listings of charity ratings are having a field day. It is rather strange that altruistic organizations, the purpose of which is to give others, themselves come under the scrutiny of guardians of ethics. Altruism is becoming a knotty issue!

Givespot.com, Guidestar.org etc. are institutions that give a detailed list of charity ratings. The list of Givespot.com is known as GiveSpot 100 list, which gives a list of charities that are rated as the top 100. Then there are other institutions like charitynavigator.org which has a charity check systems and also gives a list of the Top Ten charities so that searching for a charity becomes easy. The biggest US charity directory is Guidestar.org and it offers a wide range of charity information some of which is available for free while some of the data require payment. In USA Better Business Bureau is also a charity directory that provides a list of non-profit institutions as well as commercial enterprises.

So if you want to find the 100 top charities then there are so many charity rating guides out there and yet maybe charity ratings are actually about something else. What makes a charity stand above the rest often has nothing to do with its ratings at all. There are special ingredients that make any charity or non-charity organisation successful.

Charity Ratings and faith in the public

According to a YouGov poll of 2005, even well known charities like Save the Children and Oxfam did not enjoy a high amount of faith by the majority of the British population amounting to 56%. The public seemed to have faith only in about 15% of the charities even among those that had good charity ratings.

Charity Critics' Warnings are profuse

Trust in charities has dropped a lot in recent times. Yet who can blame the public. Charity watchdogs tell unsettling stories of very highmanagement salaries, charities taking as much as 60% of donations for overheads with their being little left for the actually charitable giving.

It has been shown in recent studies that the expenses for raising funds in places like UK and Australia amount to about18% in the case of the former and 22% in the case of the latter. The corresponding amount in USA is about 30% according to the Association of Fundraising Professionals. These are without administrative expenses, which might be higher. This is a big issue with donors especially in situations like what happened in Singapore a few years ago when the issue fell under the media scanner. This sort of negative attraction leads to a reduction in charity giving which is definitely not a good sign.

Charity ratings secret revealed

There is little difference between businesses and charities when it comes to attracting money. Their end use of the money is of course different, but their special secrets to attracting it in the first place are much the same.

To increase the charity rating as well as attract better flow of funds the secret can be found in a single word - attraction.

When we see a thing and might prefer to buy it, or would consider putting money in it, or creating a bond with it, we are likely to make the decision based on how enticing the whole idea is. If it is a very attractive proposition, we might instantly choose to opt for it while if it is not very enticing, we may not do it immediately.

Charity Water is highly attractive and hence why it's charity-rating sky rocked so quickly and the media got behind the idea. The simple idea of selling a bottle of charity water for a premium price with the extra profit been giving as a donation to the needy to access clean water was highly attractive.

The elements making up the attractiveness for Charity Water and boosting it's ratings are quite obvious.

* They have a cool name - who would think of calling a charity Charity WaterThe person behind the charity was on overdrive with passion in sharing about their idea

* They had a simple, single and clear message and mission - sell water give water - Buy One Give One

* Their focus was on how to solve the problem and not the problem itself. It is important for charities to properly define their focus if they want people to rate them highly. No one has interest in getting their attention turned to the unpleasant things in life. People want a positive focus. So when they are told that they can make a positive change in the lives of others by buying a bottle of water they feel happy.

How to reduce you Charity Ratings in a heart beat

The fastest way for a charity to lose its rating is by making itself less appealing by concentrating on the problem. People are hardly inclined to listen about all that negativity going on in the world. On the other hand, most people are ready to listen to sagas of vigour, eagerness, drive and dedication to fashion a better world.

All we have to do is see ourselves with our own kids and understand how we easily answer in the affirmative when they request for things in an eager and happy and excited way. But when they prefer to make their demands in a peevish or weepy way, we may tend to refuse.

The images that a charity uses will affect its charity ratings. Using uplifting and inspiring images will uplift and inspire people. Uplifted and inspired people give more and spend more.

Social Enterprise increases Charity Ratings and helps solve Fundraising Problems

Social Enterprise is a new business paradigm that arose some time ago. This endeavour combines in it a commercial enterprise and charity. This has been initiated by those who are enthusiastic of solving social problems but are not satisfied with the pattern of charity organizations.

Many social entrepreneurs would never survive in traditional business because their ethical and moral values would always be in conflict with many of the business decisions made. Social Enterprise is a perfect arena for these very inspiring and valuable individuals who choose to use the business vehicle to effect social and global change. One of the most famous Social Entrepreneurs of course is Muhammad Yunus who was the first businessperson ever to be awarded the Nobel Peace prize in 2006.

Buy1GIVE1 commonly known as B1G1 (Buy 1 Give 1), is a global organisation that is a recent entrant into the world of charitable giving. It is a perfect blend of business and valuable causes functioning at the global level. Buy1GIVE1 has so minimised its expenses of fundraising and management that it is able to give for charity all the funds collected. The institution is similar in its attributes to the online organization Kiva.org, which has been promoted by Bill Clinton; unlike conventional charities, Buy1GIVE1 involves direct giving to charities. Many people are convinced that it is a better way for contributing things and receiving richly in return.

Successful businessmen, who are searching for a chance to give back richly to the society and to provide for deserving charities, fully understand the importance and properly structured working credos of institutions like Buy1GIVE1. Every single sale is able to affect a change somewhere - not only altruistically. It has also the ability to forcefully influence things in such a way that each act becomes a unique marketing story. There is a world of difference in the way in which Buy1Give1 works and those charities which give away thousands and thousands of dollars work, because Buy1Give1 lets their customers know what the joy o f giving is. Buy1Give1 transaction-based giving is a perfectly beautiful way of giving.

Businesses like Buy1GIVE1 profile charities and it tends to be the charities or worthy causes as they call them, that are the most attractive that receive the most contributions. Intrinsically business owners understand the power of attraction and they tend to go with non-profit causes that have the best story rather than look at their direct rating. They intrinsically know that their customers will connect with a better story and not ever think about a charities rating.

Maple Muesli in Australia has partnered with Midday Meals in Mumbai, India. With every bag of muesli bought, a hungry child in India is fed. Midday Meals is a charity that feeds 125,000 Mumbai children every day for just US 30 cents per meal. The meals are provided in schools to keep kids off the streets and encourage learning while reducing begging and child abuse.

The company has managed to advertise the worthy cause of the charity Midday Meals in Australia. The inspiring story is continuously shared by Maple Muesli with all their buyers which has resulted in increased rating for the institution of Midday Meals in Mumbai, though all that the charity does is provide a daily lunch for those needy children. This is the era of Effective Giving - The sun has almost set on the Era of Plain Charity Donations.

In a matter of a few years, changes are bound to happen in the background of the top 100 charities as more inventive and effectual ways of giving originate. The current scenario offers very few choices on how to give for a charitable purpose. All the available ones are not good enough to make a dent in the existing problems.

Alternative Charity Ratings

Some of the new and different ways to give are highlighted and rated in the table below. Charity Comparison Points

Some better known and not so well-known charities as well as Social Enterprises are evaluated and rated below so as to be of help to those who contribute to these.

THE SALVATION ARMY

WAY TO GIVING: DIRECT GIVING

The Salvation Army comes among the top 100 charities globally - contributions are made directly by both businesses as well as individuals.

TRANSPARENCY - B - Lack of transparency - Sum of money is contributed - but result is not fully measurable.

MARKETING VALUE TO BUSINESS - C - Businesses' one-off contributions to Salvation Army may be mentioned in the press.

FUNDRAISING COSTS - B - Spends millions of dollars annually to raise funds.

CONTRIBUTORS'CHOICE OF CHARITY - B - For direct giving, you can have a lot of charities to check out before settling which one is best.

POTENTIAL FOR REAL GLOBAL CHANGE - C- Nothing new to offer in terms of market change.

PRODUCT (RED)

WAY TO GIVING: MARKETING CAMPAIGN

Product (RED) is a brand that enters into partnership with companies, which then creates products with its logo, a percentage of which goes to fighting AIDS, TB and Malaria in Africa.

CANDOUR - B - Insufficient candour - Lots of money is donated - but result is not completely quantifiable.

ADVANTAGE TO BUSINESS - A - People and enterprises by and large prefer to support it as it is promoted by popular idols like Bono and Oprah. End result of marketing is not correctly available.

COSTS OF FUNDRAISING - C -Simply splurges money on advertising - it would be far better if that money is sent directly to Africa.

DONOR'S CHOICE OF CHARITY - C - Limited choice for collaborators on deciding to which charity they should donate - all their charity work is in Africa.

POTENTIAL FOR REAL GLOBAL CHANGE - B - Products (RED) only partner huge companies and all their profits go to Africa.

THE BODY SHOP

ROUTE TO GIVING: BUSINESS TRADE & GIVING

The Body Shop is involved in community trade to help economically backward countries and makes large donations to causes from the profit they generate.

OPENNESS - B - Not sufficiently open - Plenty of money is being collected - but the results are not always completely clear.

MARKETING VALUE TO BUSINESS - A-tve - Customers are happy to be involved in community trade and are motivated to buy more. Visibility could be a lot better.

EXPENSES FOR RAISING FUNDS - A - Costs are kept low - Business design is good enough to attract large contributions and further community trade.

DONORS' CHOICE POTENTIALS - A - Ventures that donate has the option to decide in what way their donations are to be used.

POTENTIAL FOR REAL GLOBAL CHANGE - B - Businesses' giving back is great - but very few take the added effort to push for change like Body Shop.

LIVE EARTH

WAY TO GIVING: EVENT FUNDRAISING

Live Earth consisted of a string of global musical programmes which set in motion a three-year campaign to battle climate change and was held on July 7, 2007.

TRANSPARENCY - F - According to Intelligent Giving, there were big questions about accountability as to where the proceeds of ticket sales went.

ADVANTAGE TO BUSINESS - B - The sponsors of the business benefitted by the good press coverage, though by being a single occurrence results were not properly assessable.

COSTS OF FUNDRAISING - C - Huge amounts were spent on advertising and according to some the whole event was a damp squib without any actual goals.

CONTRIBUTORS'CHOICE OF CHARITY - C - Only three charities received funds.

POTENTIAL FOR REAL GLOBAL CHANGE - C - These events are usually held one-off or annually. Money is often given to larger, more established charities.

Buy1GIVE1 (B1G1)

WAY TO GIVING: SOCIAL ENTERPRISE

B1G1 is a brand licensed to collaborate with any enterprise - uniting them with any cause across the globe. A fully comprehensive model.

OPENNESS - A - The one for one style of giving sees to it that the donors' money reaches the specific cause that it is meant to help. Donors are provided information on how exactly their money is being utilised - how many kids were fed or how many trees were planted.

ADVANTAGE TO BUSINESS - A+tve - Outstanding marketing value due to:

* Calculable giving * Media interest * Effective stories * Person to person * Returning customers

FUNDRAISING COSTS - A+tve - Zero costs - B1G1 can take care of a charity's fundraising needs including a large percentage of admin as well. 100% of funds received go to the charity.

CONTRIBUTORS'CHOICE OF CHARITY - A - Business givers can choose their charity project or elect to give to a charity cause such as food or education, etc.

PROMISE FOR GLOBAL CHANGE - A - Unlimited. If more and more businesses can collaborate with charities internationally, the prospects for real change is colossal.

You Might Think Giving away Money Would Be simple!"

Giving away money appears simple on the face of it - it just involves pulling out notes or writing a cheque or punching in a credit card. But reality is a bit different. George Sores, who has donated billions to charity, insists that effective giving is a very complicated business. Underdeveloped nations receive a lot of money in aid year after year but the changes effected do not seem to be proportionate.

Asking the right questions is necessary for bringing about the required changes. Social entrepreneur Mohammed Yunus, who won the Nobel Peace Prize, has done pioneering work in the field of Microfinance and is revolutionizing the ways in which indigence and environmental problems can be tackled. People like him are showing the way as to how consumerism and social enterprise can change the face of the world. Another such example is the 'Trade - Not Aid' of The Body Shop. The ideals of Buy1GIVE1 are equally potent and are a model for charities. Social enterprise needs total recognition.

When questioned on how one can bring about some positive global change, Bill Gates showed Kiva.org and Buy1GIVE1 (www.b1g1.com) as examples of charities that enrich the giver. Those who sponsor a business are updated by Kiva.org about the activities of the business. Buy1GIVE1 also does this. By this arrangement enterprises get enough stories to tell their clients - if they buy a laptop they will know that it will help in some needy person somewhere else getting a computer.

Other methods for improving your Charity Ratings

Ensure that you have an inquisitive mind, and remain connected to a computer, and spare some time to find out about the new types of charities and how they function. These programs are mainly based on networking and work through the internet.

As of now if one is not connected with good international networks via the internet, the chances of losing out are substantial even with good charity rating, tomorrow things are bound to change - totally.

Many enterprises emerge out of thin air nowadays and grow enough in the matter of maybe three years to be sold for more than a billion dollars. This was unconceivable ten years ago, though today it has become a routine state of affairs. All these online enterprises are doing the same thing - drawing on international networks or themselves making international networks.

Buy1GIVE1 (Buy One Give One)

Buy1GIVE1 is a comparatively new Social Enterprise established in 1997 by a Japanese lady named Masami Sato. Today any business globally can be a member of Buy1GIVE1. The membership fee for smaller enterprises is as low as $1 for a day. Contributions can also be as low as one cent on a sale made. Buy1GIVE1 is spearheading the Buy One Give One transaction-based giving global movement. For any enterprise or charity requirement, working jointly with Buy1GIVE1 is very simple. It is perfectly structured and accommodating enough to adjust to the requirements of its partners. An organisation can connect its products or services with any charity endeavour (Buy1GIVE1's or their own) and each time a sale is made, the sale has to be recorded and the input paid at the end of a specific period. The amount can be sent through Buy1GIVE1 or directly to the concerned charity.

You could be losing out a lot if you are not interested in forming an association with Buy1GIVE1and not persuading your business patrons to do so. Buy1GIVE1 is a unique and brilliant organisation whose impetus as well as global impact is huge.

A new epoch in charity giving

Organizations that have been non-entities just a couple of months ago have now invaded internet with resounding user acceptance. Having an online presence on sites like MySpace, YouTube, Twitter, Facebook, NING or TipJoy are becoming survival requirements. Likewise companies like The Present, Buy1GIVE1 and Kiva are organisations that one should build a relationship with. These are the avant garde institutions that help to create and sustain charity ratings. Now is the time to give new life to a perfect future.

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